1 ) Don't buy during the highs and don't sell during the lows.
Many newbie cryptocurrency investors make the mistake of buying coins/tokens during the time where there is good news about the percentage growth of particular investments. But what most people don't understand is that during these times of growth especially when there has been growing over a significant amount of time, markets tend to correct themselves as people take profits from investments made prior to those who purchased during or towards the end of growth or all-time high. This typically isn't notice by newbie investors until they are at a loss in which they panic sell leading to further negative correction.
- The best time to buy into the market is typical during market corrections when cryptocurrencies are down from all-time highs and are not being hyped in the media. (Discounted goods)
2 ) Don't believe everything that you hear online, DO YOUR RESEARCH.
2017 saw an insane amount of growth over the year with bitcoin rising to almost $20,000 from being priced as low as around $500 the year before that. This has caused a lot of people to gain interest in the crypto markets and resulted in the surge of many crypto related content creators. Although some of these influencers that you may follow may share accurate information, you should keep in mind that all these people may be saying some things just to increase attraction or even (with a large enough following) just to pump a coins price and sell off assets at a profit at your expense. This is why it is crucial to make sure that you always conduct your own research before you invest as not everyone out there is releasing good information.
- If it sounds too good to be true it probably is, ALWAYS DO YOUR HOMEWORK.
3 ) Only invest in currencies/companies that you believe in.
When making the decision of investing your hard earned money into a cryptocurrency you have hopes will have good growth, it is always better to invest in currencies that have ideals, planning, and technology that you personally can resonate with and not because of someone else. Investing in currencies that you have personally have looked into and believe in, heightens the chance of you succeeding as if you are happy with it, it is more likely to do well than a project that you don't believe in. This also helps with holding investments during down markets as if you know the investment that you made is legit and trustworthy you are less likely to sell off during corrections, which is what most newbie investors tend to do.
- If you like the project, it is more likely that you will return a profit on your investment than investing into a project that your not sure about. (Note: that there are no guarantees and that you should only invest what your willing to lose.)
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